Rumors have been swirling around recently concerning Lil’ Kim and her record label Atlantic Records. A recent article on Billboard.com cited her comments during an appearance on the “Streetsweeper Radio” radio show of DJ Kay Slay, where Kim noted that she harbours no ill will towards Atlantic Records, but that she is eager to release her next record independently. That statement has been taken to mean that she and Atlantic Records have parted ways.

Aside from that statement, Lil’ Kim is also rumored to be in negotiations with Imperial Records, which is the independent division of Capitol Music Group. The release of her next album is planned for sometime around April or May this year, even though there has been no confirmation yet from her representatives as to her move to Imperial Records. She has stated though, that she is prepared to work on this project without the backing of any major label.

A record producer named Carlos Evans is claiming that 50 Cent, Lil’ Kim and two record companies have failed to pay him royalties on a song that sold 2 million copies, and he has filed a suit against them to the tune of $2 million — $1 million for compensation, and $1million in punitive damages.

Evans calls himself “Phantom of the Beat” and says his industry resume includes acts like Wu-Tang Clan, Ghostface Killah, and Busta Rhymes.

Evans claims, in the papers that he has filed in Manhattan’s state Supreme Court, that he was contracted with Rotten Apple records in January 2003 to produce, engineer, and mix a rap track to be performed by Lil’ Kim and 50 Cent, called “Magic Stick”.

Evans was supposed to have gotten a $7,500 advance plus royalties for his work on the song. He told the court that he was paid the $7,500 advance, but not any of the royalties, and that his requests for a royalties audit have all been ignored.

The song ended up on Lil’ Kim’s 2003 “La Bella Mafia” album, although it was intended for 50 Cent’s “Get Rich Or Die Tryin’”. Lil’ Kim’s album was recorded and distributed by Atlantic records.

Evans said that “”It was one of the hottest tracks on that album, and I didn’t collect my royalties”.

Theodore Sedlmayr, the lawyer for Rotten Apple Records issued a statement saying that the late royalty problems happened because Evans used large sample of someone else’s music in “Magic Stick”, so the segment had to be licensed and paid for first.

He said that Atlantic Records was still in the process of accounting and that if Evans was entitled to anything, he would get it. Atlantic Records declined to comment on pending litigation, as per their standard operating procedure.